Message from the Chair
Greetings, HCCP® Professionals – and welcome to the July edition of The Credential.
There’s no shortage of activity in the affordable housing industry recently. Two key events have been the enactment of the Consolidated Appropriations Act of 2018 and the proposed legislation of the Making Affordable Housing Work Act of 2018. These acts will have a significant impact on the Low-Income Housing Tax Credit (LIHTC) program.
The Consolidated Appropriations Act of 2018, enacted March 23, establishes income averaging as a third minimum set-aside election for new Housing Credit developments. Owners of new developments can choose this option over the two existing minimum set-aside elections (40/60 and 20/50). Income averaging allows credit-qualified units to serve households earning as much as 80% of Area Median Income (AMI), as long as the average income/rent limit in the property is 60% or less of AMI. The National Council of State Housing Agencies (NCSHA) has prepared a comprehensive list of FAQs to address questions. In our continuing effort to provide educational opportunities to our HCCP members, we will focus our July webinar on this topic.
This past April, Dr. Ben Carson, Secretary of Housing and Urban Development, introduced President Trump’s Making Affordable Housing Work Act of 2018. Several components of the proposed legislation would significantly affect low-income residents in HUD-assisted housing:
1) tenant rent contribution, 2) minimum tenant rent, 3) income verification, 4) alternative rent structures, 5) rent and income calculations, 6) work requirements, 7) definition of certain households, 8) impact on elderly and disabled households, 9) impact on new vs. existing assisted households and 10) hardship exemptions. Consult this link for details of the proposed bill. HUD Secretary Carson recently visited the National Housing Center to speak with NAHB’s Executive Board. You will learn more details about his visit in an article by Ann Marie Moriarty, NAHB Multifamily Communications Manager, in this edition of The Credential.
Also in this issue is an article from A.J. Johnson, president of A.J. Johnson Consulting Services, Williamsburg, Va., and a longstanding member of the HCCP Board of Governors’ Technical Advisory Group. “Internal Controls for management of LIHTC Income Housing Tax Credit Properties” highlights common mistakes in the management of LIHTC properties and provides strategies for preventing them. In an additional article, Michelle T. Lawrence, director of compliance for WRH Realty Services, offers “Dreaming of a ‘No Response’ State Review.” Michelle show how preparation provides everything needed to make a no-response audit review achievable.
Continuing with our Back to Basics compliance series, Scott Michael Dunn, CEO of Costello Compliance and director of policy for the Costello Companies, Sioux Falls, S.D., and member of the Board’s Technical Advisory Group, has provided “Verifications.’ The focus of his article is using good verification procedures to prove household eligibility for LIHTC units.
In our regular spotlight articles, you’ll meet HCCP Board of Governors member Christine Bennett, training and technical assistance manager for the Ohio Housing Finance Agency, HCCP distributor Amanda Lee Gross, director of compliance training for E&A Team, and HCCP Melanie Shapiro, director of compliance and training for Ohio Capital Corporation for Housing.
A quick reminder: The HCCP webinars are free of charge and provide a great way to meet your continuing education requirements while learning new things about our industry. 2018’s second webinar, presented on Thursday, July 19, will focus on how to Avoid Costly Mistakes with the New Average Set-Aside Option, presented by Scott Michael Dunn. Please note: This webinar is free for HCCP designation holders and Housing Credit Group members. Log in to nahb.org with your regular username and password, and the webinar price will be "$0" when added to your cart. We hope you will be able to join us.
As always, the Board of Governors is here to serve you and the HCCP credential. Tell us how we can support you in your professional endeavors, and suggest topics you’d like to see covered in The Credential or as a webinar. Keep up your good work!
Donna Mills, HCCP
Chair, HCCP Board of Governors
Stories in this edition:
Back to Basics Part 8 – Verification
Dreaming of a ‘No Response’ State Review
HUD Secretary Speaks to NAHB Members
Internal Controls for LIHTC Management
HCCP Board of Governors Spotlight
HCCP Distributor Spotlight